The Real Deal Miami

SunTrust subsidiary takes over Riverwalk Center in Jupiter

GenSpring, a wealth management subsidiary of SunTrust, has signed a lease for the entire Riverwalk Center in Jupiter, expanding its existing footprint at the building.

The company will now take over the 35,324-square-foot Riverwalk Center, which is at 150 South U.S. 1, adjacent to the $250 million Jupiter Yacht Club, a mixed-use development that includes high-rise residences, a marina and space for a future hotel.

CB Richard Ellis Vice President Anthony Librizzi represented the landlord in the deal, which involved adding 24,324 square feet to the 11,000 square feet the company was already occupying in the building.

“This could function as a headquarters location,” Librizzi said. “When the requirement came out from [GenSpring], it was for 25,000 square feet of space. When I found out the building I had wasn’t going to make the short list for the picture, I realized we had this building in Jupiter, and we could recap this lease, and they could have the entire building — a boutique sort of building.”

The firm is leaving its space in Palm Beach Gardens. GenSpring was represented by Mark Montgomery of Jacksonville-based CNL Commercial Real Estate.

While there were three tenants already in the building that had to be relocated, the deal was complicated by the fact that 1,691 square feet on the ground floor had to be re-zoned from retail to office, a change which was finally approved by the Jupiter City Council Dec. 23.

That small portion had been earmarked for retail because of the Jupiter Riverwalk project, Librizzi said. The city was hoping that the adjacent Riverwalk Project would generate foot traffic, but the fact that it had not yet done so was a major argument in the rezoning application.

The deal is a positive sign for the northern Palm Beach County office market, Librizzi said, as companies that were putting off decisions in 2009-10 are now making moves as their leases expire.

“I would say we’re cautiously optimistic about it,” he said. “There’s activity — but today, activity is defined by lateral movement, renewals and downsizing. So whereas, last year, we had no activity, this year there are at least real estate transactions — there’s velocity.”